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In this video, the speaker discusses a situation where a client was sued for $70,000 over a copyrighted image used on their website by a designer. The client then sued the designer, leading to complications. To prevent such legal issues, the speaker emphasizes the importance of proper contracts in web design. They clarify that they are not an attorney and not providing legal advice, but will share a contract template they use for web design projects. This template serves as a solid foundation for clients to customize with specific details and legal requirements to ensure protection and avoid future nightmares.